LCDs scarce despite extra production
Market facing severe problems with supply as manufacturers fail to keep up with demand
The supply of LCD panels in the UK market is facing severe constrictions, despite considerable expansion in production being made by the leading suppliers.
According to iSuppli/Stanford Resources, a market researcher, the opening of six new fifth-generation plants has done little to ease the very high demand for panels in the short term.
Even with the new manufacturing capacity, supplies of LCD panels are suffering because of the arrival of high-value LCD TVs, a shortage of certain panel-related components and the slow ramp-up of the extra production capacity by manufacturers.
"Although LCD TVs will account for only nine per cent of all large-sized thin film transistor [TFT]/LCD panel revenues in 2003, these products exert a major impact on the overall market," explained Sweta Dash, director of LCD and projection research at iSuppli/Stanford Resources.
"This is because of their promising nature and the large variety of opportunities they present. By 2007 large-sized LCD TV revenues will begin to exceed those from the notebook panel segment."
The concentration on higher-value products by manufacturers has hit the supply of desktop LCD panels hard.
John Turner, business manager at Midwich, said: "LCD panels are definitely in short supply, particularly the 15in models which are very hard to get hold off.
"[I don't know] whether they are trying to move the market to 17in panels, but manufacturers are just not making as many 15in panels."
Turner added that his firm does get batches in, but they are usually already sold. "After ordering 1,000 units, we might only receive 500," he said.
"We now tend to order as many as we think we can stomach if they did actually all turn up. It's just a way of securing as many as we need."
The overall LCD panel market comprises large TFT/LCD panels for PC displays, notebooks and LCD TVs and small-sized panels for mobile phones, digital cameras and hand-held video games.
By 2007, this market will be worth $71bn, according to iSuppli/Stanford Resources, with large-sized panels accounting for 70 per cent of the entire market, up from 64 per cent in 2003.